Hi
In Chapter 6 it states on page 4:
this will include activity to stabilise rates (when cashflows between the government and private sectors would otherwise impinge on bank liquidity).
What does this mean? Can you give an example of when this has happened in 'recent' years.
Also on page 8 it states:
Financial intermediaries sell their own liabilities to raise funds that are used to purchase the liabilities of other corporations.
Is this just saying that intermediaries set up funds for individuals to invest in (which are then liabilities of the intermediary) and they use funds raised to invest in 'borrowing' by corporates/govts (these are the liabilities of the corporates/govts)?
Thank you,
Rachael
Last edited: Sep 14, 2023